Park Aerospace Corp. has recently released its 10-Q report, detailing its financial performance for the 13 and 26 weeks ended August 31, 2025. The company, formerly known as Park Electrochemical Corp., is based in Westbury, New York, and primarily operates in the aerospace market, developing and manufacturing advanced composite materials for various aircraft and aerospace applications. These materials include film adhesives, lightning strike protection materials, and specialty ablative materials for rocket motors and nozzles, among others.
In the 10-Q report, Park Aerospace Corp. reported net sales of $16.4 million for the 13 weeks ended August 31, 2025, and $31.8 million for the 26 weeks ended August 31, 2025. This represents a marginal decrease in sales for the 13-week period and an increase for the 26-week period compared to the same periods in the prior fiscal year. The decrease in sales for the 13 weeks was attributed to lower sales to military markets, while the increase for the 26 weeks was due to higher sales to commercial markets offset by lower sales in the business aircraft market.
Despite lower sales levels, the company's gross profit for the 13 weeks ended August 31, 2025, was higher than the prior year's comparable period, attributed to a more favorable product mix and sales price increases. Similarly, the gross profit for the 26 weeks ended August 31, 2025, was higher than the prior year's comparable period due to higher sales and a more favorable sales mix, along with sales price increases. The gross profit margins for both periods were also higher than the prior year, primarily due to a more favorable sales mix, sales price increases, and lower waste, partially offset by increased overhead costs.
Earnings before income taxes and net earnings increased for both the 13 and 26 weeks ended August 31, 2025, compared to the prior year's comparable periods. The increase was primarily attributed to higher gross profit margins, partially offset by higher selling, general, and administrative costs, including higher salaries and fringe benefits, travel expenses, and professional fees.
The company also highlighted inflation in costs of raw materials and supplies, as well as supply chain challenges from other suppliers impacting its customers' production, which could potentially impact the company's sales. Additionally, the report mentioned long-term contracts with customers and the company's role as the exclusive North American distributor of ArianeGroup's RAYCARB C2®B NG proprietary product, used in critical rocket and missile systems.
Today the company's shares have moved 7.56% to a price of $21.20. For more information, read the company's full 10-Q submission here.
